Amari's family is moving to California and would like to purchase fire insurance. The insurance company is offering them a plan with an annual premium of $450. If there is a fire that damages the home, the insurance company will pay $250,000. It is estimated that the probabilty of a fire in your area is 0.0008. What is the expected value of the policy?

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A: Solution: Note: Since its saying 'X' represents profit from smallest to largest, so i am considering…

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A: Given data: Total tickets = 100 Tickets sold price = $20 Grand price  = $1000 To find: Expected gain…

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Q: What is the value of R2? Provide an interpretation. O a. The adjusted R2 value is 0.25. This means…

A: It is given that R = 0.498191 = 0.50 ( 2 decimal places )R2 = 0.248194 = 0.25  ( 2 decimal places…

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A:

Q: A black jack player is attempting a new strategy at the table. He plays 250 hands and calculates his…

A: The expected value is a measure of the long-term average outcome of an event,taking into account the…

Q: A company estimates that 0.4% of their products will fail after the original warranty period but…

A: p(FAILS WITHIN 2 YEAR)= p = 0.004 P(not fail) = 1-0.004 = 0.996 replacement cost $ 50 premium to…

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A: In this context, a negative expected value implies that, averaged over many tickets, you should…

Q: expected value for the insurance company? Round your answer to two decimal places.

A:

Q: Jim likes to day-trade on the Internet. On a good day, he averages a $1400 gain. On a bad day, he…

A: On a good day, Jim averages a $1400 gain. On a bad day, Jim averages a $700 loss.Percentage of time…

Q: Jim likes to day-trade on the Internet. On a good day, he averages a $1400 gain. On a bad day, he…

A: Answer On a good day, he averages a 1400 gainOn a bad day, he averages a 700 loss.he has a good days…

Q: An insurance policy sells for $600. Based on past data, an average of 1 in 50 policyholders will…

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Q: A 40-year-old man in the U.S. has a 0.247% risk of dying during the next year. An insurance company…

A: Given information- We have given that a 40-year-old man in the IS has a 0.247% risk of dying during…

Q: A company estimates that 0.85% of their products will fail after the original warranty period but…

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Q: An insurance company expects 14% of its policyholders to collect claims of $300 this year and the…

A: We have given that An insurance company expects 14% of its policyholders to collect claims of $300…

Q: A company estimates that 0.5% of their products will fail after the original warranty period but…

A: It is given that the company estimates that 0.5% of their products will fail after the original…

Q: A company estimates that 0.9% of their products will fail after the original warranty period but…

A: Given, The percentage of company’s product will fair after 2 years of original warranty = 0.9 % The…

Q: A 40-year-old man in the U.S. has a 0.247% risk of dying during the next year. An insurance company…

A: To calculate the expected value for the person buying the insurance, we need to consider the…

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A: We have to find out given mean.

Q: You have $69,000. You put 16% of your money in a stock with an expected return of 14%, 35,000 in a…

A: Amount invested in 1st stock is given by =16% of 69,000=16100×69,000=11,040 Expected Returns on this…

Q: expected value per ticket from the standpoint of the charity?

A: As a fundraiser, the local charity is raffling off a prize worth $500.00. They plan to sell 1300…

Q: A company estimates that 0.1% of their products will fail after the original warranty period but…

A: The products' proportion estimated by the company that will fail after the original warranty…

Q: A portfolio's value increases by 20% during a financial boom and by 7% during normal times. It…

A: We have given that  A portfolio's value increases by 20% during a financial boom and by 7% during…

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A:

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Q: Nhat is the company's expected value for each warranty sold?

A: HERE USE GIVEN INFORMATION AND EXPECTED VALUE FORMULA

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A: Solution: From the given information, it can be observed that the probability of winning the case in…

Q: A company estimates that 0.8% of their products will fail after the original warranty period but…

A: The proportion of products estimated by the company for failing after the warranty original period…